Liz and Jack set out to find a new cast member from "real America."
What they find, in venturing to Kenneth's homeland of Georgia, is that "real" America does note exist. Or at least not in the way they thought it did. The real America as 30 Rock ultimately sees it is all the same, even if it's not flattering.
This season's plot, finding another cast member to be a regular on TGS, is ongoing, and Jack and Liz going to Kenneth's hometown to find "real" comics made sense, and was hilarious.
Why Kenneth didn't go with them to show them around is a bit puzzling, but he offered great comic relief in New York in spite of that omission.
This was a Halloween episode, too, so we saw Frank, Lutz and Toofer being friendly to Jenna just so they can go to her gay friends' Halloween party.
Why? Because there will be hot chicks. Did we even need to explain that?